This invention relates to marketing and more particularly to a method and system for differentiated customer promotion.
Coupon distribution is widely used as a method for marketing products. However, the distribution of coupons is not without disadvantages. For example, coupon distribution is logistically complex. Much effort is extended by stores in receiving, verifying, and submitting coupons for reimbursement. As a method of targeted marketing, coupons are also somewhat deficient. Coupons may be exchanged or sold, reducing any targeted marketing aspect of coupon distribution. Coupons are also cumbersome to customers. Gathering, storing, and remembering to take a redeemable coupon to a store are activities with which many customers simply do not have time to engage.
Fraud is also a problem. Store employees sometimes redeem coupons in the absence of the purchase of an associated product, either to allow a friend the benefit of the discount or as a means to obtain cash from their employer.
In addition to these problems, the unauthorized duplication of coupons also limits more widespread use of these coupons for marketing. Further, some systems utilize customer identity to provide incentives to the customer based upon the customer""s prior shopping history. Although desirable, these systems incorporate identification systems, which can add cost.
Accordingly, a need has arisen for a method and system for providing customer incentives that address the disadvantages of prior methods and systems. The present invention provides such in system and method for providing customer incentives.
According to one embodiment of the invention, a method for customer promotion of a store includes sequentially processing each of a plurality of items in a customer order and after processing each item, accumulating the price of each item. A first signal is generated indicating that the accumulated price exceeds a predetermined threshold and in response a marginal discount associated with each item scanned subsequent to the generation of the first signal is determined. All unapplied marginal discounts are accumulated for application to the customer order. A second signal indicating that the accumulated discount exceeds a predetermined minimum is generated, and in response, a discount is applied to the customer order.
According to another embodiment of the invention, a system for customer promotion over the Internet includes a computer-readable medium and a computer program encoded on the computer-readable medium. The computer program is operable, when executed on a computer, to sequentially receive signals indicative of the respective prices of a plurality of items in a customer order received over the Internet and accumulate the price of each item and determine that the accumulated price exceeds a predetermined threshold. In response the program determines a marginal discount associated with each subsequently item processed item and accumulating all unapplied marginal discounts. A determination is made that the accumulated discount exceeds a predetermined minimum and in response a discount is applied to the customer order.
Embodiments of the present invention provides numerous technical advantages. For example in one embodiment, accumulation of marginal discounts and application of the accumulated discount produces the appearance of the customer receiving a discount on a particular item. Because any given transaction likely will include the customer""s preferred products, over time it may appear to the customer as if discounts are being provided for the customer""s preferred items. Providing discounts for a customer""s preferred items likely induces customers to return to the store providing such discounts. Additionally, a method of customer promotion does not suffer from disadvantages associated with redeemable coupons. Furthermore, such a method of customer promotion can be implemented without identification of the customer. In addition, differential customer promotion is effected in a shopping context not amenable to redeemable coupons.